Fitbit plans for an IPO of 22.4 million shares
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FitBit News

Fitbit plans to get listed on the New York Stock Exchange (NYSC) and will be traded as FIT.

On Tuesday, Fitbit - a wearable device producer company has filled for an IPO with the Securities and Exchange Commission, with an aim to go public offering of 22.4 million shares, within a range of $14 to $16 per share, with an additional $358 million in financing the business.

According to the filing, Fitbit is expecting to raise about $358.4 million from its sale of shares in its offering, but won’t receive any proceeds from the sale of the 7.5 million shares belonging to its existing investors.

Talking about Fitbit, it is a San Francisco-based- the producer of wearable fitness tracker device company, which allows customers to track their physical fitness like, heart rates, and calories burned. Last month, the company unveiled its plans for an IPO.

In the end of March, the company said that it has successfully sold more than 20.8 million wearable devices, since its launch. In 2014, the company reported revenue of about $745.4 million.

Unlike, Amazon, ABC Bank, and ICBC Bank, now Fitbit is planning to go for a public IPO, while it also faces a tough competition in the wearable technology sector like, Samsung, Apple, and Microsoft.

Fitbit will have two classes of stock when it gets listed. Class A shares that will be sold in the offering and Class B shares will have 10 times the voting power than that of Class A. As a result, insiders will effectively maintain control of the company following the IPO.

How Fitbit is going to spend the money? Still, remains a question for most of the investors. The company said that the funds could be used to accelerate research and development or ramp up acquisitions, but no firm plans have been set their track.

Once, if this deal gets approved at the top of the range, the value of IPO would be about $448 million, and its business valuation will be about $3.3 billion. Yet, the company is expecting to go beyond this. The deal should hit the US market in a couple of weeks. Fitbit plans to get listed on the New York Stock Exchange (NYSC) and will be traded as FIT, and the lead underwriters, including Bank of America (BAC), Deutsche Bank (DB), and Morgan Stanley (MS).

Author
Christy Gren is an Industry Specialist Reporter at Industry Leaders Magazine; she enjoys writing about Unicorns, Silicon Valley, Startups, and Business leaders and innovators. Her articles provide an insight about the Power Players in the field of Technology, Auto, Manufacturing, and F&B. Follow Christy Gren on Twitter, Facebook & Google.

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